Annual inflation falls to 3.7 per cent in September quarter
Thursday 22 October 2026 · 4 outlets · 4 reports · updated In this story Reserve Bank of New Zealand, Stats NZ, Westpac
New Zealand's annual inflation rate dropped to 3.7 per cent in the three months to September, down from 4.1 per cent in the June quarter. While lower, the rate remains above the Reserve Bank's 1–3 per cent target. Analysts suggest the dip may be temporary due to rising fuel and electricity costs.
Key facts
6 facts
- Annual inflation fell to 3.7% in the September quarter
- Inflation was 4.1% in the June quarter
- Reserve Bank target inflation range is 1-3%
- Petrol prices rose 19.1% annually
- Airfares rose 12.5% in the year to September
- Electricity prices rose 9.3% in the year to September
The full story
1 min read · 3 outlets
New Zealand's annual inflation rate fell to 3.7 percent in the three months to the end of September, down from 4.1 percent in the June quarter. Despite the dip, the rate remains above the Reserve Bank's target range of 1 to 3 percent.
Petrol prices rose 19.1 percent annually, driven by oil shocks from the Middle East conflict. However, petrol prices were lower during the September quarter compared to the June quarter. Without the fuel component, inflation would have been estimated at 3.2 percent.
Other significant contributors to inflation included airfares, which rose 12.5 percent, electricity, up 9.3 percent, and local council rates, which increased 6.2 percent. The cost of constructing new housing also rose by 3.2 percent.
Economists suggest the Reserve Bank may raise the official cash rate by 25 basis points at its meeting next week. Some analysts noted that core inflation measures, which strip out volatility, rose to 3.1 percent.
How it developed
- Fri 23 Oct, 5:15amThe proportion of items that rose in price increased to 59.7 percent, up from 56.2 percent last quarter.
Where reports differ
- Economists predicted different inflation rates, with Westpac tipping 3.7%, while others expected between 3.8% and 4%.
Compiled from reports by RNZ, The Post and Stuff.
